Fannie & Freddie – Newer Faster Short Sales.
It’s a hot topic for sure, and now there’s even more talk about short sales and expedited processes by Fannie & Freddie (who, by the way, sound more like a brand of women’s panties and a rapper, respectively). No disrespect, of course…just sayin’.
New Short Sale Process
For those real estate agents and homeowners awaiting a decision on their short sale offer from Fannie Mae and Freddie Mac, June 15th is “D” day, thanks to new Servicing Alignment Initiative guidelines issued by the GSE that will demand greater focus and speed when it comes to short sales and all-things pre-foreclosure related. Fannie and Freddie are taking measures to minimize response times in attempts to silence the incessant whining of real estate practitioners and to make the short sale transaction process more efficient. The pressure is on the GSE to provide concise information about foreclosure alternatives, and the GSE has no choice but to comply with new deadlines set forth for short sale evaluations. Hence the June 15th deadline. And speaking of deadlines, servicers have 30 days to make a decision after they receive an offer within the short sale program or a completed Borrower Response Package (BRP) through the Home Affordable Foreclosure Alternative (HAFA) program or a GSE program.
What happens if they exceed 30 days? No, they won’t turn into pumpkins (although that alternative would be way more pleasant); servicers will need to give the borrower a weekly status updates (ew), and they will need to shit or get off the pot no later than 60 days post BRP. Say the servicer wants to play lawyer and counteroffer? The borrower has to reply within five business days, and then the servicer has another 10 days to respond back. It’s a reciprocal game of cat and mouse to see who gets the cheese.
What do you think, will short sales actually get faster with these new Govmt. regulations?